Congress passes a new bill that mandates that all coal-fired power plants reduce carbon emissions by an extra 1%. A cost-benefit analysis indicates that the cost of reducing carbon emissions by this amount will be $100 billion; whereas, the expected benefit of reducing emissions by 1% is only $10 million. This is an example of which type of government failure? a) Corruption b) Agency Inertia O c) Pork-barreling (d) Dead-weight Loss to Society due to excessively high cost of compliance with regulations Previous Page Next Page Page 42 of 56